Currency: Rupee hits fresh low of 87.92

KARACHI: The rupee hit its second record low against the dollar in two days on Friday, touching 87.92 on increased import payments and pessimism about the country’s economic outlook before firming to 87.75/78 at the close. The rupee had ended Thursday’s session at 87.61/66 after hitting its previous record low of 87.82. “The rupee traded at 87.92 per dollar and there were import payments amounting to around $200 million,” said a currency dealer at a foreign bank.  Analysts said further weakness was likely over the current fiscal year. “Our forecasts are for the rupee to end 2011 at 89 levels and touch 92 by June 2012,” said Sayem Ali, economist at Standard Chartered Limited.

Published in The Express Tribune, September 17^th, 2011.